DISTRIBUTION FIRM AGREES 10-YEAR LEASE ON SANDWELL WAREHOUSE
A 100,000 sq ft warehouse in the Black Country has been let to a distribution firm as demand for fulfilment services continues.
Commercial agents at Harris Lamb have let Unit 1 Autobase Industrial Park in Tividale to Rexville Solutions Ltd on a 10-year term.
The deal further evidences the demand in the urban logistics sector, with the market having seen record take-up in 2021 and supply levels now critically low.
Neil Slade, who oversaw the letting, said: “Inevitably, as the public had little choice but to shop online during the Coronavirus pandemic due to the non-essential retail closures, the cumulative effect is more products being moved from warehouse to front-door and hence a rise in demand for urban logistic centres. The Midlands has already seen a significant number of deals to e-fulfilment businesses and expectations are that these consumer habits will underpin demand for warehousing going forward.
“The letting of Unit 1 Autobase to Rexville is the second time the property has been let in 12 months, having first satisfied a short-term PPE manufacturing requirement. This new deal was agreed off a headline rent of £6.25 per sqft, over the quoting rent and without any void period to a business who had acquired 50,000sqft from us in the region recently and who highly likely to acquire more warehousing to satisfy the own e-fulfilment contracts.
“Located only three miles from the M5, providing convenient access to the motorway network, Autobase offers CCTV and 24-hour gatehouse security to its occupiers. Unit 1 met all of Rexville Solutions’ requirements, with HGV trailer parking, demised car parking and office accommodation, whilst we were also able to dispose of a large yard area to a third party on an effective back-to-back deal to see the Estate now fully let,” he said.
The occupation of Unit 1 takes a further Midlands industrial estate to full capacity and further emphasises the ongoing need for new industrial development within the region.